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Postal Services Bill


Postal Services Bill
Part 2 — Royal Mail Pension Plan

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(b)   

the right to subscribe for, or acquire, such securities and any

other rights in connection with such securities,

“shares” include stock,

“share rights”, in relation to any shares, means—

(a)   

rights to subscribe for or acquire the shares, and

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(b)   

any other rights in connection with the shares,

“subsidiary” has the meaning given by section 1159 of the Companies Act

2006, and

“wholly owned by the Crown”, in relation to a company, means the

Crown owns all of it.

10

(2)   

In this Part references to a person providing a universal postal service have the

same meaning as in Part 3 (see section 63(2) and (3)).

(3)   

In this Part references to a company’s post offices (or network of post offices)

are to those post offices (whether or not owned or operated by the company)

that the company is engaged in providing.

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(4)   

For the purposes of this Part (other than Schedule 2) a company is to be

regarded as being in the same “group” as another company if, for the purposes

of section 1161(5) of the Companies Act 2006, the company is a group

undertaking in relation to that other company.

Part 2

20

Royal Mail Pension Plan

Introduction

15      

Introduction

(1)   

In this Part—

“the RMPP” means the Royal Mail Pension Plan,

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“qualifying member of the RMPP” means a person who is or has been a

member of the RMPP of a prescribed description,

“the qualifying time” means the time immediately before such date as

may be prescribed (which may be before the passing of this Act),

“qualifying accrued rights” means—

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(a)   

any right which, at the qualifying time, has accrued to or in

respect of a qualifying member of the RMPP to future benefits

under the RMPP,

(b)   

any entitlement under the RMPP to the present payment of a

pension or other benefit which a qualifying member of the

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RMPP has at the qualifying time, or

(c)   

any entitlement to benefits, or rights to future benefits, under

the RMPP which a person who has survived a qualifying

member of the RMPP has at the qualifying time in respect of the

member.

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(2)   

For the purposes of the definition of “qualifying accrued rights”—

(a)   

references to pensions or other benefits (including future benefits) do

not include money purchase benefits but, subject to that, do include

benefits attributable to additional voluntary contributions, and

 
 

Postal Services Bill
Part 2 — Royal Mail Pension Plan

9

 

(b)   

references to a right include a pension credit right.

(3)   

In the event that qualifying members of the RMPP include any person (“P”)

who is in pensionable service under the RMPP after the qualifying time—

(a)   

the qualifying accrued rights in respect of P, and

(b)   

the amounts payable in respect of those rights,

5

   

are to be determined for the purposes of this Part on the assumption that P had

opted, immediately before the qualifying time, to terminate that service.

Powers exercisable

16      

Transfer of qualifying accrued rights to new public scheme

(1)   

The Secretary of State may by order establish a scheme (a “new public scheme”) which,

10

in respect of pensionable service under the RMPP before the qualifying time, provides

for pensions or other benefits to be payable to or in respect of persons who are or have

been qualifying members of the RMPP.

(2)   

The Secretary of State may by order make provision for the transfer of

qualifying accrued rights to a new public scheme (without the need for any

15

approval or consent to the transfer).

(3)   

An order under subsection (2) may include provision for the discharge of

liabilities in respect of the qualifying accrued rights that are transferred.

(4)   

A new public scheme may—

(a)   

include provision for increasing in particular circumstances the

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amounts payable in respect of qualifying accrued rights,

(b)   

include provision in relation to any persons who are active members of

the RMPP which (despite the effect of section 15(3)) differs from the

provision made in relation to persons who are deferred members of the

RMPP,

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(c)   

include provision for the payment of transfer values, and

(d)   

include provision for the transfer of money purchase benefits under the

RMPP into the scheme (whether or not the contributions to which those

benefits are attributable are made before or after the qualifying time)

and the conversion of those benefits into benefits under the scheme.

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(5)   

An order under this section may include provision for treating a new public

scheme as an occupational pension scheme for the purposes of any provision

made by or under any enactment specified, or of a description specified, in the

order.

(6)   

An order under this section may include provision for—

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(a)   

treating a new public scheme as a salary-related contracted out scheme

for the purposes of Part 3 of the Pension Schemes Act 1993, and

(b)   

applying any provision of that Part with modifications.

(7)   

Provision made by an order under this section may have retrospective effect.

(8)   

The Secretary of State may—

40

(a)   

provide for a new public scheme to be administered by any person, and

(b)   

delegate to any person any functions exercisable by the Secretary of

State under a new public scheme.

 
 

Postal Services Bill
Part 2 — Royal Mail Pension Plan

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17      

Division of the RMPP into different sections

(1)   

The Secretary of State may by order make provision for—

(a)   

the division of the RMPP into different sections,

(b)   

the participation of different companies in the different sections, and

(c)   

the allocation of assets, rights, liabilities or obligations between the

5

different sections.

(2)   

Provision made by an order under this section may have retrospective effect.

18      

Amendments of the RMPP

(1)   

The Secretary of State may by order make such amendments of the RMPP as

the Secretary of State considers appropriate in connection with any order made

10

under section 16 or 17.

(2)   

The provision that may be made by an order under this section includes

provision authorising or requiring the amount of pensions or other benefits

payable to or in respect of qualifying members of the RMPP to be determined

in particular circumstances by reference to pensionable service under the

15

RMPP before and after the qualifying time.

(3)   

Provision made by an order under this section may have retrospective effect.

19      

Protection against adverse treatment

(1)   

Subsection (2) applies to the exercise by the Secretary of State of—

(a)   

the power to make an order under section 16 in a case where the order

20

contains provision establishing a new public scheme or transferring

qualifying accrued rights to a new public scheme, and

(b)   

the power to make an order under section 17 or 18.

(2)   

In exercising the power the Secretary of State must ensure that the relevant

pensions provision in respect of each person who is or has been a member of

25

the RMPP is, in all material respects, at least as good immediately after the

exercise of the power as it is immediately before the exercise of the power.

(3)   

“The relevant pensions provision” means the provision for the payment of

pensions or other benefits which is contained in the RMPP or in a new public

scheme.

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(4)   

Subsections (1) to (3) do not require provision to be included in a new public

scheme if the Secretary of State is of the opinion that the provision would be

incompatible with any enactment or EU obligation (including any enactment

applying as a result of any provision made under this Part).

(5)   

Nothing in subsections (1) to (3) is to be read as—

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(a)   

requiring particular provisions of the RMPP or a new public scheme to

take the same or similar form,

(b)   

requiring a new public scheme to be established in a particular way,

(c)   

requiring any power or duty conferred or imposed by the RMPP or a

new public scheme to be exercised or performed in a particular way, or

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(d)   

affecting any power of any person to amend the RMPP or a new public

scheme.

 
 

Postal Services Bill
Part 2 — Royal Mail Pension Plan

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(6)   

The power of the Secretary of State to amend a new public scheme may not be

exercised in any manner which would or might adversely affect any provision

of the scheme made in respect of qualifying accrued rights unless—

(a)   

the consent requirements are satisfied in respect of the exercise of the

power in that manner, or

5

(b)   

the scheme is amended in the prescribed manner.

(7)   

The consent requirements are those prescribed for the purpose of obtaining the

consent of members of the scheme to its amendment.

20      

Transfer of assets of the RMPP

(1)   

The Secretary of State may by order make provision for the transfer of assets of

10

the RMPP to—

(a)   

the Secretary of State,

(b)   

a nominee of the Treasury, or

(c)   

a fund established by the Secretary of State for the purpose of holding

the assets pending their disposal.

15

(2)   

An order under this section may be made only if an order under section 16 is

being, or has been, made.

(3)   

An order under this section may include provision for—

(a)   

the delegation to any person of the administration and management of

any fund within subsection (1)(c), and

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(b)   

the making of payments into the Consolidated Fund.

(4)   

This section needs to be read with section 21 (which contains restrictions on the

exercise of the power to make a transfer under this section).

21      

Restriction on power to transfer assets

(1)   

The power of the Secretary of State to make an order under section 20 (a

25

“transfer order”) must be exercised so as to secure that the ratio of assets to

liabilities of the RMPP immediately after the relevant time is at least equal to

the ratio of the assets to liabilities of the RMPP immediately before that time.

(2)   

“The relevant time” is the time at which the order under section 16 in

consequence of which the transfer order is made has effect.

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(3)   

For the purposes of this section any reference to the assets or liabilities of the

RMPP is to their amount or value determined, calculated and verified by a

prescribed person and in the prescribed manner.

(4)   

In calculating the value of any liabilities for those purposes, a provision of the

RMPP that limits the amount of its liabilities by reference to the amount of its

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assets is to be disregarded.

Supplementary provisions

22      

Taxation

(1)   

The Treasury may by regulations make provision for varying the way in which any

relevant tax would, apart from the regulations, have effect in relation to

40

(a)   

a new public scheme,

 
 

Postal Services Bill
Part 2 — Royal Mail Pension Plan

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(b)   

members of a new public scheme, or

(c)   

a fund within section 20(1)(c).

(2)   

Regulations under subsection (1) may include provision for treating a new

public scheme as a registered pension scheme.

(3)   

The Treasury may by regulations make provision for varying the way in which any

5

relevant tax would, apart from the regulations, have effect in relation to, or in

connection with, anything done in relation to

(a)   

the RMPP, or

(b)   

any members of the RMPP,

   

by or under, or in consequence of, an order made under this Part.

10

(4)   

Regulations under subsection (1) or (3) may include provision for any of the

following—

(a)   

a tax provision not to apply or to apply with modifications,

(b)   

anything done to have or not to have a specified consequence for the

purposes of a tax provision, and

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(c)   

the withdrawal of relief and the charging of a relevant tax.

(5)   

Provision made by regulations under subsection (1) or (3), other than provision

withdrawing a relief or charging a relevant tax, may have retrospective effect.

(6)   

The Treasury may by regulations make provision, in relation to qualifying accounting

periods, for extinguishing such losses made in a trade as they consider are attributable

20

to deductions made for, or in connection with, contributions in respect of qualifying

members of the RMPP.

(7)   

A “qualifying” accounting period is one beginning on or after the date (“the

trigger date”) on which an order under section 16 is made establishing a new

public scheme or transferring qualifying accrued rights to a new public

25

scheme.

(8)   

Regulations under subsection (6) have effect only if the company whose losses

are extinguished is wholly owned by the Crown (within the meaning of Part 1)

on the day before the trigger date.

(9)   

In this section—

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“relevant tax” means—

(a)   

income tax,

(b)   

capital gains tax,

(c)   

corporation tax,

(d)   

inheritance tax,

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(e)   

stamp duty and stamp duty reserve tax, and

(f)   

stamp duty land tax,

“registered pension scheme” has the same meaning as in Part 4 of the

Finance Act 2004,

“tax provision” means any provision made by or under an enactment

40

relating to a relevant tax.

23      

Information

The Secretary of State may by order make provision for requiring any

prescribed person to disclose any information (whether in the form of a

document or otherwise) to the Secretary of State for any purpose of this Part.

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